The correct answer is 1,200,000. I just need help on the solution. Thank you.

16. On April 30, 2015, a fire damaged the office of Golden Moth Chemicals. The following balances were gathered from the general ledger on March 31, 2015: Accounts Receivable 920,000 Inventory, January 1 1,880,000 Accounts Payable 950,000 Sales 3,600,000 Purchases 1,680,000 a. An examination of the April bank statement and canceled checks revealed checks written during the period April 1-30 as follows: Accounts Payable, March 31 240,000 April Merchandise Shipments 80,000 Expenses 160,000 Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refund from a vendor for merchandise returned in April. b. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. c. Correspondence with suppliers revealed unrecorded obligations at April 30, of P340,000 for April merchandise shipment, including P100,000 for shipments in transit on that date. d. The average gross profit rate is 40%. e. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the inventory was a total loss. What amount is recognized as loss from fire damage on April 30